New MACD Forex Trading Strategy

Designed to catch market moves in their early stages, the New MACD forex trading strategy is a trading strategy that suits traders on all levels.

You don’t have to sit in front of your screen that long before a buy/sell setup pops up for you to profit from.

Chart Setup

MetaTrader4 Indicators: newMACD.ex4 (default setting), SEFC05.ex4 (Input Variable modified; MA1Period=48, MA2Period=51)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Download the New MACD Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Place buy order(s) if the following indicator or chart pattern gets displayed:

  1. If the lime banded bars of the SEFC05 custom indicator is aligned somewhat below the candlestick as seen on Fig. 1.0, price is said to be pressured higher i.e. a signal to buy the asset of focus.
  2. Wait for the blue and red dotted lines of the newMACD.ex4 custom indicator to break above the 0.00 level and once this is confirmed as illustrated on Fig. 1.0, the sentiment in the market is said to be bullish i.e. a signal to enter long position(s).

Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following takes center stage on the activity chart:

  1. If price opens and closes below the banded bars of the SEFC05 custom indicator during long entries, price is said to be making a reversal from its earlier bullish trend, hence an exit or take profit is advised.
  2. If the blue line of the newMACD.ex4 custom indicator breaks below the 0.00 level while a buy signal is ongoing, then we can say that price is taking a swing to the downside i.e. an exit or take profit is recommended.

Sell Entry Rules

Enter a sell entry if the following rules or conditions are in place:

  1. If the orange banded bars of the SEFC05 custom indicator is aligned somewhat above the candlestick as seen on Fig. 1.1, price is said to be pushed lower i.e. a signal to sell the asset of interest.
  2. Ensure the blue and red dotted lines of the newMACD.ex4 custom indicator break and hovers below the 0.00 level and once this is confirmed as depicted on Fig. 1.1, the sentiment in the market is said to be bearish i.e. a signal to enter short position(s).

Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following holds sway:

  1. If price opens and closes above the banded bars of the SEFC05 custom indicator during a bearish trend, price is said to be making a reversal from its earlier bearish stance, hence an exit or take profit will do.
  2. If the blue line of the newMACD.ex4 custom indicator breaks above the 0.00 level while a sell alert is ongoing, then we can say that price is taking a push to the upside i.e. an exit or take profit is recommended.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The SEFC05 custom indicator is a Buy and Sell repaint indicator.

The SEFC05 is designed around two moving averages, thus allowing the indicator to smooth price, thereby forming a trend following indicator.

The newMACD.ex4 is a custom built Moving Average convergence Divergence indicator that gauges changes in price trend.

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